by Malinda Geisler, content specialist, AgMRC, Iowa State University, malindag@iastate.edu

Profile updated March 2008.

A more popular and growing opportunity for agricultural producers is agritourism. Agritourism is generally defined as activities that include visiting a working farm or any agricultural, horticultural or agribusiness operation to enjoy, be educated or be involved in what is happening at that locale.

A few examples of agritourism are:

• farm tours for families and school children,
• day camps,
• hands-on chores,
• self-harvesting of produce,
• hay or sleigh rides, and
• overnight stays in a bed and breakfast.

Some people have become involved in agritourism as a way of supplementing their income, while others desire an opportunity to educate the public and introduce people to farming.

Agritourism Overview

The rural United States is a popular tourist destination. Many producers who are involved in agritourism note there is synergism in having non-competing agritourism enterprises in the area to increase traffic to the area and provide more tourism attractions for customers.

While nationwide statistics on agritourism were unavailable at this writing, selected state statistics provide an overview of revenue generated from agritourism activities. Based on USDA estimates, about 52,000 U.S. farms or 2.5 percent of total farms earned income from agritourism in 2004. The study indicated the Southern United States accounted for more than half of all farms receiving recreational income. The Midwest accounted for about one quarter of all farms in agritourism. This exploratory study used two USDA databases, the 2004 Agricultural Resource Management Survey and the 2000 National Survey of Recreation and the Environment.

Hawaii

The Hawaii Agricultural Statistics Service pegged the value of agritourism-related activities at $33.9 million in 2003, up from $26 million in 2000. There were 187 Hawaiian farms that had agritourism-related income in 2003, and another 145 farms reported intentions of starting agritourism activities. On-farm sales direct to farm visitors was the leading category of revenue, with $13.5 million, followed by retail sales of products from other farms or souvenir items. Other revenue-generating activities for Hawaiian farms included outdoor recreation, accommodations such as bed and breakfast and meeting rooms, entertainment and education.

Montana

Montana had 10.3 million nonresidents visit the state in 2006, spending $2.9 billion. Yellowstone and Glacier Parks are the most visited sites, overall. A survey indicated fishing, wildlife watching, hiking and shopping as primary Montana tourist activities.

Vermont

Rural Weddings
Weddings are an $86 billion a year business. About 2.1 million couples get married each year. Weddings cost from a few hundred dollars to tens of thousands, with the average U.S. wedding costing between $20,000 to $25,000. An outdoor wedding is appealing to couples because it offers a beautiful setting with lawn, trees and flowers, and may be more affordable than traditional ceremony sites.

Hosting weddings on a farm can entail considerable work, as well as ensuring all details associated with weddings and large groups of people in general are considered. Some of these important factors include liability insurance, restroom facilities, staffing, marketing, parking, chairs and tables, an alternative indoor facility such as a barn or pavilion in case of inclement weather, a kitchen for catering and other activities for kids.

Wineries
Family-owned wineries are popular tourist attractions in certain regions of the United States. These wine-producing vineyards host visitors for educational tours and wine tasting. Some locations offer overnight stays. For more detailed information on wineries, see the Wine Tours page.

California accounts for two-thirds of all wine sold in the United States. Wine is the number one finished agricultural product in retail value in California with an economic impact of $51.8 billion. The state produces 90 percent of all U.S. wine production. California’s wine industry generated $17.8 billion in retail sales in the United States. Tourism directly related to California’s wine industry accounts for 19.7 million visitors and expenditures of $2 billion annually.

California has 2,275 wineries, with Napa and Sonoma counties accounting for the most wineries. There are more than 4,900 wineries in the United States.

Starting a Business

There are several issues to consider when starting an agritourism business. University specialists suggest that you closely examine the following three factors:

• determine your "attraction,"
• develop a marketing plan and
• review other issues such as insurance, labor and biosecurity.

An agritourism enterprise may require more labor and the need for employees. Additional tourism or marketing opportunities may interfere with normal farm activities. Hosting visitors means dealing with the public, which increases the farm’s risk and liability. Close proximity to a significant population center is another important factor.

Local, state and federal regulations will need to be addressed on such topics as zoning, signage, food service, animal exhibits and health.

According to the Travel Industry Association of America, travel and tourism is a $703 billion industry in the United States that has directly generated more than 7.5 million jobs. It ranks as the first-, second- or third-largest retail-sales industry in 29 states. Travel and tourism generates $104.9 billion in tax revenue for federal, state and local governments, with the restaurant industry accounting for the majority of this economic activity.

Travel and tourism is the nation's largest services export industry, the third-largest retail sales industry (following auto and food store sales) and one of the largest U.S. employers. According to the Travel Industry Association of America, the top U.S. destinations in 2004 for traveling residents were:
(1) California, (2) Florida, (3) Texas, (4) New York, (5) Pennsylvania, (6) Illinois, (7) Ohio, (8) North Carolina, (9) Georgia and (10) Virginia.

Wolfe, Kent, and Rob Holland, Considerations for an Agritainment Enterprise in Georgia, University of Georgia Extension, 2002.